What does an Owner's title insurance policy cover?

An Owner's title insurance policy is specifically designed to protect the property owner from potential issues or defects related to the title of the property. This coverage is crucial because it safeguards against unexpected claims or losses that could arise from disputes over property ownership, liens, errors in public records, or fraudulent activities affecting the title.

By ensuring that any defects in the title are addressed, such as undisclosed heirs or unpaid liens from previous owners, the policy gives the homeowner peace of mind and financial protection. If a problem does occur after the purchase, the title insurance company will defend the title in court if necessary and cover any financial losses up to the policy limit, making this insurance an essential aspect of real estate transactions for property owners.